India’s Gas Output To Rise 60% By 2019, But Not Enough To Meet Domestic Demand

India’s natural gas output is forecast to increase by about 60 percent by 2019, however this will not be enough to meet domestic demand, according to an annual report published by the oil ministry, The Economic Times reports.

Despite the forecast for a 60 percent surge in natural gas output in the next four years, this will only be sufficient to cover less than 30 percent of the local gas demand by that time, the report said.

India’s domestic gas production is expected to rise to 147 million cubic metres per day (MMcm/d) in 2018-2019, from 98.15 MMcm/d forecasted in 2014-2015, whereas gas demand will reach 523 MMcm/d as a result of power generation and industrial use.

Expensive LNG imports and the lack of cheaper domestic gas have seen many of India’s power plants either underutilized or idle.

The Indian government has taken steps to enhance the availability of gas in the country, including intensification of domestic exploration and production, development of shale gas policy framework, import of liquefied natural gas (LNG), exploration in the Mining Lease Area with certain conditions, and acquisition of overseas oil and gas assets, the annual report said.